Audit, risk and compliance software provider Ideagen has announced the acquisition of a key competitor, Qualsys, for £15.6m.

Qualsys is an EQMS (Electronic Quality Management Software) company based in Sheffield.

The business was started in 1995 by Mike Pound and Mike Bendall and now employs more than 50 people. Its products are used by more than 500,000 people in more than 120 countries.

Qualsys has blue chip customers, such as Diageo, Unilever, Honeywell and BT, across a range of industries, including pharmaceutical, healthcare, complex manufacturing and food and drink.

Ideagen’s own customer base includes British Airways, Ryanair, US Navy, Bank of New York, Heineken, and 180 hospitals across the UK and US.

The firm is headquartered in Nottinghamshire with satellite offices across the UK and locations in Bulgaria, Dubai and Malaysia.

Ben Dorks, CEO of Ideagen said: “This is fantastic acquisition for Ideagen and will have a significant impact on our position in the EQMS market.

“The latest iteration of their product will sit perfectly within our Q-Pulse product family and will integrate into the Quality Management component of our Quality, Health, Safety and Environment (QHSE) cloud platform.

“This will ensure we can offer our existing and new customers, the latest developments in EQMS, together with the tried and tested expertise of Ideagen’s team of developers and support people, as well as a wider suite of products to meet all of their audit, risk and compliance requirements.”

The deal is expected to contribute £0.6m in EBITDA within the current financial year and £1.5m in the year to April 2022.